Showing That Lessons Are Learnt From The Past

By Jehan Perera-Sunday, February 01, 2015

The interim budget of the National Democratic Front government presented by its Finance Minister Ravi Karunanayake was easily the most people-friendly budget of any government in recent times. It was described as a mini-budget, unlike the main budget that makes its appearance in November.  But it will have a significant impact on the lives of the majority of people who are still far from being the middle income earners that Central Bank figures used to make out.  The new government has claimed that the economic situation is far from being the rosy one painted by the former government.  Nevertheless it has sacrificed government revenue by reducing several taxes and prices of essential commodities.  As in the case of the reduction of the prices of petrol and diesel fuel a fortnight ago, the government acted boldly in giving big price concessions rather than niggardly ones.

One of the main charges leveled against the former United People’s Freedom Alliance government is that it led the country into massive debt due to its white elephant projects, waste and corruption.  However, the new government appears to have decided that it will address repaying the debts to a later time.  It is not repeating the politically damaging policies of the short-lived United National Front government of 2001-04 which was also headed by today’s Prime Minister, Ranil Wickremesinghe.  That government too inherited an economy in very bad shape.  The expenditures on the war against the LTTE that was taking place in full force at that time had drained the economy.  One prong of the government’s remedy to this problem was to slash government expenditures and to try to stimulate private sector investments.

The UNF government was successful in reviving the economy.  Its policies were rational in terms of economics.  But its policies created hardships to the masses of people and were resented by them.  In addition, the government sought to deal rationally with the issue of the war against the LTTE by entering into a ceasefire agreement with it with the support and praise of the international community.  However, both of these rational policy shifts by the UNF government proved to be deeply unpopular with the masses of people.  The economic recovery programme of the government doomed the poorer sections of the population to further belt-tightening and suffering.  The people did not get the immediate relief they had hoped for when they voted for a change of government in 2001.

Lesson learnt

At the same time as it sought to rationalise the economy through cost-cutting measures, the UNF government sought to stabilise the country through a peace process with the LTTE.  The international community was prepared to support the government in this.  What followed was a textbook case of mediation and conflict resolution.  However, the UNF government’s efforts to make the LTTE a partner in the peace process caused unease amongst the majority of people who did not trust the LTTE. This enabled the government’s political rivals to accuse it of betraying the country to the LTTE and to the international community. As a result the government could not keep its hold on power and was soon defeated at elections.

The mini budget presented on Thursday is an indicator that the new NDF government headed by Prime Minister Wickremesinghe has learnt from its previous experience in regard to the economy.   Although the country is deep in debt due to the shortcomings in the economic policies of its predecessor government, the new government has decided not to pass the burden onto the masses of people immediately.  Instead it has heeded their desire for a measure of relief from economic hardship that the former government was getting increasingly oblivious to.  The former UPFA government was content with putting up big shows, including both exhibitions of Sri Lanka’s triumphs and large infrastructure projects that showed people the fruits of development that could be theirs, but in the future.

The former UPFA government believed it had an unbeatable formula to obtain the support of the majority of people due to its constant mobilisation of Sinhalese ethnic nationalism.  It constantly reminded the ethnic majority of the military victory it had obtained over the LTTE and the militancy of the Tamil ethnic minority.  It warned about future threats to the unity of the country and to the primary place of the Sinhalese as the ethnic majority.

It also claimed that the international community was seeking to revive the LTTE and used that justification to bolster the strength of the military and rule the ethnic minorities with a heavy hand.  It added the Muslim community as a second threat to the country and sought to add to the fears of the ethnic majority to obtain their political support.

Caution needed

In catering to the needs of the majority of people through its mini budget, the new government has shown it is being pragmatic about retaining the support of the majority of people in anticipation of general elections in June. But if it is to prevail at the forthcoming elections, it will be important for the new government to specifically woo the ethnic majority, of whom a significant majority voted for the former president.  In the period 2001-04, the UNF government lost its popularity due to its harsh economic policies in relation to the majority of people, but also due to the erosion of confidence that accompanied its efforts to compromise with the LTTE for the sake of peace.

There is a similar issue this time. This time around, the LTTE is no longer the threat, but it has been replaced by the international community that is pressing for accountability on the part of the former government leaders for war crimes.  Unlike the former government that refused to engage with the international community on the issue of war crimes, and has the sympathy of the ethnic majority on this issue, the new government has shown its willingness to engage with the international community on the issue of war crimes.  It has sent one of the country’s top diplomats Jayantha Dhanapala to the meet with the UN High Commissioner for Human Rights to ask for time and space to cope with this issue.   Unless properly handled, the issue of war crimes and accountability can undermine the popularity of the new government regardless of the economic benefits it provides the people.

The former leaders of the government, especially former president Mahinda Rajapaksa have repeatedly told the people that they fought against and destroyed the LTTE for the sake of the country and its people. The former president has said he is prepared to go to the electric chair if he can save the country from being divided and the soldiers who fought the war from being punished.  This type of speech is very emotive and can evoke the political support of the Sinhalese ethnic majority who has been given a high dose of nationalistic propaganda over the past decade by the former government leaders and propagandists.

It is in this context that the promise of the new government leaders not to permit any Sri Lankan to be taken away to an international court for war crimes and instead to hold a domestic inquiry into accountability issues needs to be viewed.

Public servants’ salary hike, productivity improvement and lessons from Dompe eHospital Project

A mega salary increase to public

servants- February 2, 2015

 
A mega giveaway offered in the Interim Budget 2015, presented to Parliament last week, has been the proposal to increase the salaries of public servants across the board. In terms of this proposal, the salary increase of Rs. 3000 given in the Budget 2015 presented in November last year is to be topped up by a further Rs. 7000 in two stages – Rs. 5000 from February 2015 and the balance Rs. 2000 from June.

Public Servants’ Salary Hike, Productivity Improvement and Lessons From Dompe EHospital Project by Thavam Ratna

Heartbreaking News From Kekirilanthaya – II

By Sudat Pasqual –February 1, 2015

Sudat Pasqual

1. The Attorney General’s office has informed the Supreme Court that all who have been accused and convicted of felonies between 2005-2014 will be allowed to use “Rajapakses did it” and “Rajapakses forced me to do it” as valid and acceptable arguments in their defense and/or appeal of their convictions even if there is no credible evidence to validate those arguments.

2. GOSL has announced that the freedom of the media comes at a price. According to Rajitha Senaratne, the self-appointed czar of disinformation, each published and telecast syllable will cost Rs.10 to the publisher/telecaster. However, government friendlies will be able to claim the cost as a refundable business expense like the value added tax. Hostiles will have to suck it up, Senaratne further elaborated.

3. Tamilnet, the long shunned LTTE mouthpiece, has been rehabilitated under the Yahapalana program of President Sirisena. President Sirisena has informed all media organizations to consider the terrorist sympathizing pseudo news web as a legitimate source of information during the 100-day dream cruise

4. With the ascension of Ranil Wickramasinghe to the position of Prime Minister, the stock prices of certain lubricants have reached all-time highs. There have been heavy trading in stocks such as Extra Virgin Coconut Oil and Jaffna produced Extra Virgin Gingelly Oil. Stock prices of these 2 commodities have gone through the ceiling since Wickramasinghe took over the Premiership.

5. It has been estimated that Sri Lanka’s former Governor of the Central Bank Cabraal has incurred almost 10 billion in loses to the country by merely breathing during the last 9 years. Janata Vimuthi Peramuna has filed an injunction in Colombo High Court seeking an immediate cessation of Cabraal’ s obnoxious practice of breathing while incompetent.

6. The initial probe into Sri Lanka Cricket (SLC) has confirmed the long held suspicion that there was absolutely no intelligent life in the whole organization.

7. While the probe-rs were not surprised to find no intelligent life at Sri Lanka Cricket, they were astounded to witness so many spineless creatures walk upright. The matter has been referred to the Medical Research Institute (MRI) for further probing.

8. The cost of the SLC probe will exceed the cost of Voyager (probe to Mars) and will be funded by Turf Accountants of Sri Lanka

9. After thanking American Secretary of State Kerry for offering to strengthen democracy in Sri Lanka; President Sirisena said that he would be glad to send Election Commissioner Deshapriya to Florida in the event Jeb Bush became the Republican nominee for President in 2016.

10. When asked by reporters whether he took over the supervision of the Central Bank and the Stock Exchange because he didn’t trust his minister of finance; the Prime Minister rubbished the idea and said that he absolutely trusted his finance minister 49% of the time and it was only the other 51% that had him worried.

11. At the request of MP’s Sherlock Senasinghe and Watson Hadunhetti, the President has extended the period of paliganima to February 1. After that, “vengeance will be mine” he said.

12. Raj Rajaratnam, the much misunderstood philanthropist who is free on bail in the US has been appointed as an advisor to Sri Lanka’s Ministry of Finance. He will be offered US $ 3 million worth of Union Bank shares as compensation.

13. In an unrelated to Raj Rajaranam news item, the Colombo High Court has postponed all cases scheduled for January 29, 2015 till year 2020.

14. Chief Justice of Sri Lanka has been appointed as Ambassador to Pandaemonium, Capital of Hell in Paradise Lost. Chief Justice had requested Sodom and Gomorrah but it had been promised to the retiring Anglican Bishop of Kurunegala.

Budget deficit has reduced from Rs 521 B to Rs 494 B - Finance Minister Karunanayake tells CCC budget seminar

By Ravi Ladduwahetty- 2015-02-01

Ceylon Finance Today: Finance Minister Ravi Karunanayake, said that the slashing of wasteful capital expenditure by the present government had reduced the 2015 Budget deficit from the Rs 521 billion to Rs 494 billion.

Addressing a post mini budget seminar hosted by the Ceylon Chamber of Commerce at the Hilton Residencies on Friday night, he said that the 2015 Budget which was presented by former President Mahinda Rajapaksa and passed in Parliament last November which had a Rs 521 billion deficit, which was 4.6% of GDP, had been slashed to Rs 494 billion, which was 4.4% of GDP.
The slashing of such wasteful expenditure and capital costs has even stunned the Opposition members of Parliament, Karunanayake told a packed audience of private sector luminaries.
He also said that the contingent liabilities which were government projects which were done on Treasury Guarantees by the previous UPFA administration, had risen from Rs 6.9 trillion which was 72% of GDP which had risen to
Rs. 8.8 trillion.

He also explained that the new interim budget was prepared in a record time of around 8-10 days. We won the elections on 9 January and took around another eight days to settle down and the remaining eight days were taken to prepare the interim budget which was prepared by Deputy Minister of Policy Planning Economic Affairs
Dr. Harsha de Silva, Deputy Minister of Highways and Investment Promotion Eran Wickremaratne and Central Bank Governor Arjuna Mahendran.

He also invited the private sector to bring in their own proposals for the betterment of economic development. "We will invite and evaluate all proposals which will benefit all segments of the economy and we will not entertain crony capitalism, he said.
Deputy Minister Dr. Harsha de Silva, in an obvious broadside at the previous regime said: "What we mean by development is not mere ad hoc infrastructure development, but by the general improvement of all the lives of people, across the board.

This would mean the development of the lifestyles of the people not only among the middle class in Colombo, but also those of suburban towns and also the rural community at areas such as Tissamaharama which means that the household incomes have to improve," he said
He also stressed that though the previous administration boasted of a 7.5% GDP growth, the growth of the household income was a mere 0.5%.

Central Bank Governor Arjuna Mahendran also stressed on the need for the simplification of the tax regime. He said that Sri Lanka has now 20 taxes and another 15 pages of tax exemptions. This is a real paradox where most of the taxes which were installed by the previous regime were on food items, which were extremely regressive, he said.
He also cited the example of Georgia which simplified its tax regime which resulted in their revenue collections increasing from 10% to 25% within three years.

Retired Director General of Economic Affairs of the Commonwealth Secretariat Dr. Indrajit Coomaraswamy said that Sri Lanka had an aspirational society, but it was important to meet revenue targets.

He also stressed the need for the trickling of wealth from the rich to the less well off. However, if the economy gets overheated with consumption exceeding demand, then measures will have to be taken like in 2011/2012, he said

Don’t use ‘His Excellency’ when reference is made to me – President Sirisena

 February 2, 2015

The President stressed that the epithet ‘His Excellency’ should not proceed his name when any reference is made to him. Likewise, when referring to his wife, the term ‘First Lady’ should be avoided. The President should be referred to as ‘Mr. Maithripala Sirisena’ while his wife should be referred to as ‘Mrs. Maithripala Sirisena’, President Maithripala Sirisena stressed on Saturday (31) in an interview with a state television channel.
Although there are several President’s houses around the country, the President said that he does not intend using President’s House in Fort, other than for State functions, while outstation President’s Houses will be used for State functions in the provinces, pending a final decision regarding their use in a productive manner. He will only use the Anuradhapura President’s House but will not reside in it.

He also pointed out that at the forthcoming General Election the UPFA and the UNP will contest separately but after the conclusion of the election, in a bid to form a national government, these two parties will join together. It is expected that this will set an example to other countries too, the President said.
President also emphasised that an order placed by the previous Government for a new aircraft to be used by the President has been revoked and instead the money would be utilised to buy spare parts for the aircraft of SriLankan Airlines and Mihin Lanka which would be merged.
He further said that the aircraft, at an estimated cost of $ 16 million, was to be paid for from Treasury funds and the decision to halt the purchase was taken in consultation with Prime Minister Ranil Wickremesinghe.
The President also said he had instructed that schoolchildren should not be brought to functions attended by him because he had observed schoolchildren being forced to spend hours in the scorching heat till the President had arrived at various ceremonies.
President Sirisena said that his family members would not be using helicopters unless they were accompanying him and he too would be using them only for official purposes, if required.
President Sirisena said that the contents of the interview with the media organisation should be considered as orders and should be adhered to.

Ranil assures national government after General Election Prime Minister Ranil Wickremesinghe has announced that the current Parliament will be dissolved after the 23 April General Elections are held in order to form a new Parliament. Speaking at a meeting with United National Party organisers in Kandy on Saturday, Prime Minister Wickremesinghe explained the future plans of the Government. He said the UNP will contest the elections independently and form a National Government with President Maithripala Sirisena led by the Sri Lanka Freedom Party. “We will contest for that (general elections) independently. After that we will all unite and create a national government together with the Sri Lanka Freedom Party,” he said. “There is no doubt whatsoever about a unity government,” the Prime Minister asserted. He told the UNP members to organise and work hard to establish a UNP Government at the upcoming parliamentary elections. The Prime Minister said the days-old Government has given lots of benefits and relief to the people through the Interim Budget presented in Parliament on Thursday. “We aim to give an equal helping hand to everyone in the country regardless of their political affiliations to prosper economically,” Wickremesinghe said adding that the people want this country to be cleansed. “Today, people want to resurrect the country from this destructive   path, and lead it in a novel direction,” he said. Referring to the interim budget, he said, after a long time, a budget beneficial to 99% of the population, was presented by the new government of President Maitripala Sirisena. “In the previous budgets, people were heaped with tax burdens. Like village people, the middle class people also had to endure difficulties in living. Village economy collapsed. Yet, one percent of the population prospered with all kinds of benefits and concessions. There are numerous problems confronting the country. First of all, we have to quench the hunger of people,” he said. Wickremesinghe said the new government cancelled three licenses ssued for Casino business. “I wish good luck for anyone becoming millionaires through hard work, be they from our party or any other party. But, I do not condone anyone plundering the wealth of the country to become rich,” the Prime Minister said. For the restoration of good governance, he said, action had been taken to introduce constitutional amendments. “I thank you all for opening up the new path. Let’s work for the victory of our party at the next election. Then, we can ensure a bright future for our children,” Wickremesinghe added.

State Minister Faizer Mustapha resigns?

February 1, 2015

Parliamentarian Faizer Mustapha has tendered his resignation as State Minister of Aviation and has flown overseas, this afternoon, a source close to the Government said.

The source said Mustapha had been disappointed with the Government’s decision to shuffle some state institutions that came under the Minister of Aviation. 

Several institutions which came under the Aviation Ministry were detached and added to Minister Arjuna Ranatunga’s Ports, Shipping and Aviation Ministry, it was reported. 

State Departments, Institutions, and Public Corporations that come under a specific Ministry have been amended by a Gazette Extraordinary published on 10 January, 2015. 

The source added only the operation of the Mattala Airport has been allocated for Mustapha. However, when contacted, Private Secretary of Mustapha told Ada Derana that the State Minister flew to Singapore due to a personal matter.

Ada Derana also learns that some governmental bodies including the Central Bank and the Securities and Exchanges Commission, which were previously handled by the Ministry of Finance, have been added to the Ministry of Economic Development & Policy Implementation. 

Mustapha who was the former Deputy Minister of Investment Promotion and Sri Lanka Freedom Party (SLFP) Colombo Central Organizer quitted the ex- government and pledged to support President Maithripala Sirisena, on 31 2014.

Rs. 157 Million Spent For Entertainment In Presidential Palaces In Nov/Dec

February 1, 2015 

A whopping Rs. 157 million had been spent by the Rajapaksas on food and beverages alone in entertaining those who visited the many ‘Presidential palaces’ that were built in various locations in the country during the Rajapaksa regime.

President Maithripala Sirisena during an interview on ITN last night revealed that in the months of November and December last year, Rs. 157 million had been spent to treat guests who visited the many Presidential palaces located in Fort, Anuradhapura, Kandy, Nuwaraeliya, Embilipitiya, Mahiyangana, Kataragama as well as a brand new ‘co-ordination center’ that had been constructed in Tangalle – the hometown of former President Mahinda Rajapaksa.

He also said that a brand new, luxurious airplane worth 16 million USD had been ordered for the exclusive use of PresidentRajapaksa.

“It was due to be delivered to Sri Lanka by next month. However, following discussions the Prime Minister, the Ministers and I halted the importation of the aircraft and allocated those finances to purchase spare parts for the aircraft that are currently used by Sri Lankan and Mihin Lanka Airlines,” he said.

S.B. Acquires Colombo 7 House Gifted To Colombo University

• Allegations Against Former Higher Education Minister

By Nirmala Kannangara- Sunday, February 01, 2015

University of Colombo has come under severe criticism for allowing former Higher Education Minister S.B. Dissanayake to acquire a valuable residence in Colombo 7 on forged documents which was a gift to the university by an eminent Gynaecologist.

S.B. Acquires Colombo 7 House Gifted to Colombo University by Thavam Ratna

More disclosures on previous Govt’s private army

By Our Political Editor-Wednesday, February 04, 2015

PM directs Minister of State for Defence to conduct full probe, CID detectives question retired senior military officers
More details of heavily armed private security companies conducting election work for RajapaksaNational Executive Council finalises Constitutional changes; Maithripala to retain some executive powers; Ranil to head government

Prime Minister Ranil Wickremesinghe on Monday directed the Minister of State for Defence, Ruwan Wijewardene, to conduct a full investigation into the operation of a veritable private army run by the state-backed Rakna Arakshaka Lanka Limited (RALL) and Avant Garde Maritime Security Services Limited (AGMSL) after disclosures made in the Sunday Times (Political Commentary) last week.

More Disclosures on Previous Govt’s Private Army by Thavam Ratna

Minister notes money shortage at SLBFE 

Sunday, 01 February 2015

Foreign Employment Minister Thalatha Atukorale says that there is a shortage of Rs. 150 million that had been under the Sri Lanka Bureau of Foreign Employment and the bureau will be closed down until the matters are properly sorted out.

Minister Thalatha Atukorale made these comments in a meeting held at Kurunegala with the Foreign Employment Agency owners in the North Western Province.

Pointing out that during the previous era the bureau had been controlled not by the state officials but by the personal staff members of the former subject minister.

She has said the monies were sent by Sri Lankan migrant workers who have worked hard to earn a living.

CPA’s Fraud & Deceit – Public Should Seek Clarification From CPA: Dr. Nirmal

February 1, 2015

Nirmal Ranjith Dewasiri, Head, Department of History, University of Colombo who is also the former president of the Federation of University Teachers’ Associations (FUTA) has strongly condemned the way the Centre for Policy Alternatives (CPA) has responded to the Colombo Telegraph’s revelations on its dubious financial transactions.

DR. Nirmal Ranjith Dewasiri

Asked to offer his comment on the behavior of the CPA, Dr Devasiri said; “I am not happy about the way in which CPA is handling the whole issue.”

“Apart from being failed to provide satisfactory answers to the questions raised by the Colombo Telegraph, it has not done enough to prove its commitments to the ideals that it is fighting for, viz. good governance, accountability, etc. This is very unfortunate because the damage it not only for them but also for the entire struggle for these ideals. The public has a right to ask for clarification from the CPA because the funds that they receive are meant for the public after all.” he further said.

The Colombo Telegraph charged the CPA and its all powerful Executive Director DrPaikiasothy Saravanamuttu of deliberately misleading donors, sanctioning or condoning dubious financial behavior and covering up fraud.

Related posts; 

Pakistani diplomat in Colombo has links to ISI?

February 1, 2015

A documents handed over by the US to India in connection with the probe into the plot to carry out terror strikes on American and Israeli consulates in the South have established communication between Sakir Hussain, undergoing jail term in the case, and ‘Shahjee’, a Pakistani national introduced to the accused allegedly by a Pakistani diplomat working in Colombo. 

NIA, which has carried out the probe into the conspiracy meticulously, had sent a request under Mutual Legal Assistance Treaty to the US for details from service provider whose email was being used by Hussain to communicate to his handler in Sri Lanka. 

Hussain, who pleaded guilty and is at present undergoing jail term in India, was arrested in April last year by sleuths of Intelligence Bureau with Tamil Nadu police while doing reconnaissance of US consulate in Chennai and Israeli consulate in Bangalore to facilitate a terror strike similar to 26/11. For this, two terrorists were to be flown in from Maldives. 

Hussain had named Amir Zubair Siddiqui, who was working as Visa Counsellor at Pakistan High Commission based in Colombo till some time back but had to be repatriated to Islamabad after India mounted pressure on Sri Lanka about his alleged activities targeting this country. Pakistan, however, maintains that he was shifted after completing his tenure in Colombo. 

During his questioning, Hussain had named one “Shahjee” who was introduced to him by Siddiqui and all the meetings took place in hotels at Colombo. The accused told the investigators that “Shahjee” was described as second-in- command to the Visa Counsellor. 

The response provided by US authorities following the request under the MLAT showed that the account was being operated by “Shahjee” who had provided the name while registering with the email account, official sources said. 

There have been email communications with some email addresses in Pakistan and even personal account of Siddiqui, the sources said. 

The email account is also alleged to have been operated under the Internet Protocol (IP) address of the Pakistan High Commission in Colombo, the sources claimed. 

Late last year, the name of “Shahjee” again surfaced after NIA arrested Arun Selvarajan in Chennai and allegedly recovered some incriminating documents including layout plans of country’s defence establishment like the Coast Guards complex. 

During preliminary interrogation before being sent to judicial custody, Selvarajan, who is also wanted in Sri Lanka for allegedly supporting banned LTTE terror group, told the officials that he had supplied information about some strategic locations to ISI handlers based in Colombo who were allegedly operating from the Pakistan High Commission, the sources said. 

Selvarajan again named Siddiqui and “Shahjee” as his handler and said that his business had been in shambles when he was approached by the two Pakistani officials for allegedly carrying out espionage activities in India, the sources said. 

Siddiqui and “Shahjee” were not new names for the Intelligence Bureau as they had cropped up earlier in 2012-13 when security agencies picked up one Tameem Ansari, a frequent flier from Trichy to Colombo. 

Ansari was arrested after six months of surveillance in 2012. India has already sent its request under Mutual Legal Assistance Treaty (MLAT) in this case to Sri Lankan authorities last year to help in questioning and gathering evidence from the Island nation. 

Ansari was a small trader who sent, among other things, potatoes and onions to Sri Lanka. After reverses in business, Ansai came in touch with Haji, a Tamil-speaking Muslim from Colombo who is alleged to have introduced him to Siddiqui in the Pakistan mission in Colombo, and “Shahjee”.  (Source – India Times)